Ipca Laboratories Ltd. — Interim / Quarterly Report 2020

Nov 7, 2020

THRU ONLINE FILING

November 7, 2020

BSE Ltd. Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400 023 Scrip Code - 524494

National Stock Exchange India Limited, Exchange Plaza, C-1, Block-G, Bandra Kurla Complex, Bandra - (East). Mumbai-400051. Scrip Code: IPCALAB

Dear Sirs,

1. Pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith our Standalone and Consolidated Unaudited Financial Results along with limited review report of the Company's Statutory Auditors thereon for the 2 nd Quarter and half year ended 30th September, 2020 of the financial year 2020-21, which was taken on record at the Meeting of the Board of Directors of the Company held today at Mumbai.

We are also enclosing herewith a press release issued by the Company in respect of its Q2 FY21 / H1 FY21 unaudited financial RESults.

• 1. We wish to inform you that, the Board has declared an interim dividend of Rs. 8/- per share (400%) for the financial year 2020-21.
• 1. Kindly note that vide our letter dated 2i^h October, 2020, we have already informed you that 1i^h November, 2020 has been fixed as the Record Date for ascertaining the members entitlement of said interim dividend now declared which will be paid by the Company to the eligible shareholders on or before 5 th December, 2020.

Kindly note that the Board meeting started at 10.30 a.m. and concluded at 11.40 a.m.

Thanking you

Yours faithfully For Ipca LaboratoriES Limited

~

Harish P. Kamath . Corporate Counsel & Company Secretary

Encl: a/a

Ipea Laboratories Ltd. . . . www.ipca.com

125, Kandlvh Industrial Estate, CTS No. 328, Kandivli (West), Mumbai 400 067 (Maharashtra), India I T: +91 2262105000 F:+91 22 6210 5005 Regd. Office: 48, Kandivli Industrial Estate, Kandivli (West), Mumbai 400 067 (Maharashtra), India ^I T: +91 22 6647 4444 E:ipca@ipca.com ClN: L24239MH1949PLC007837

--------------------------~-!

Ipca Laboratories Limited

Regd. Office : 48, Kandivli Industrial Estate, Kandivli (W), Mumbai 400 067

CIN: L24239MH1949PLC007837

Tel:+91 22 6647 4444, E-mail : Investors@lpca.com Website : www.lpca.com

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2020

							(₹ Crores)
Sr. No.	Particulars		Quarter Ended			Half Year Ended	Year Ended
		Sept 30, 2020	June 30, 2020	Sept 30, 2019	Sept 30, 2020	Sept 30, 2019	Mar 31, 2020
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1	Revenue from operations	1297.77	1485.25	1212.56	2783.02	2223.57	4367.43
H	Other Income	15.00	11.68	14.33	26.68	33.76	64.69
Ш	Total Income (I+II)	1312.77	1496.93	1226.89	2809.70	2257.33	4432.12
N	Expenses :
	a) Cost of materials consumed	405.78	362.73	387.77	768.51	709.41	1431.10
	b) Purchases of stock-in-trade	32.78	33.37	53.91	66.15	99.82	204.65
	c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(32.00)	11.34	(32.02)	(20.66)	(37.00)	(155.05)
	d) Employee benefits expense	239.09	241.92	219.69	481.01	425.19	870.79
	e) Finance costs	1.81	2.46	4.05	4.27	8.52	15.79
	f) Depreciation and amortisation expense	46.26	45.23	45.11	91.49	87.15	178.69
	g) Other expenses	291.96	247.94	321.65	539.90	569.55	1101.18
	Total Expenses (IV)	985.68	944.99	1000.16	1930.67	1862.64	3647.15
v	Profit before exceptional items and tax (III-IV)	327.09	551.94	226.73	879.03	394.69	784.97
VI	Exceptional items				٠
VII	Profit before tax (V-VI)	327.09	551.94	226.73	879.03	394.69	784.97
VIII	Tax Expense
	- Current tax	52.10	101.50	32.52	153.60	69.02	137.98
	- Short / (Excess) provision of earlier years			٠	٠
	- Deferred tax liability / (asset) including MAT credit	(0.69)	(3.20)	(1.81)	(3.89)	(2.40)	(5.47)
IX	Profit for the period from continuing operations (VII-VIII)	275.68	453.64	196.02	729.32	328.07	652.46
x	Other Comprehensive Income
	A (i) Items that will not be reclassified to profit or loss -
	- Actuarial gain/(loss)	(0.45)	(1.31)	(3.61)	(1.76)	(3.96)	(7.21)
	(ii) Income tax relating to items that will not be reclassified to profit or loss	0.08	0.23	0.61	0.31	0.69	1.25
	B (i) Items that will be reclassified to profit or loss
	- Exchange difference in translating the financial statement of foreign operation	(0.12)	0.13	(0.15)	0.01	(0.21)	(0.60)
	- Gain/(loss) on cash flow hedge	0.18	0.03	(0.14)	0.21	(0.83)	(1.47)
	(ii) Income tax relating to items that will be reclassified to profit or loss	(0.01)	(0.03)		(0.04)	0.16	0.36
	Other Comprehensive Income / (Loss) for the period net of tax (X)	(9,32)	(0.95)	(3.29)	(1.27)	(4.15)	(7.67)
XI	Total Comprehensive Income for the period (IX+X)	275.36	452.69	192.73	728.05	323.92	644.79
XII	Paid-up equity share capital (Face value of ₹ 2/- each)	25.37	25.27	25.27	25.37	25.27	25.27
XIII XIV	Other Equity Share Warrant	$\blacksquare$	۰	٠	4416.03	3389.63	3640.33
XV	Net Worth	٠ ۰	٠ $\bullet$	٠ ú.	4441.40	۰ 3414.90	11.94 3677.54
XVI	Earnings per share (of ₹ 2/- each) (Not annualised):
	Basic $(7)$	21.79	35.90	15.51	57.69	25.96	51.64
	Diluted $(7)$	21.79	35.87	15.51	57.69	25.96	51.60

: 2 :

\ ,

STATEMENT OF STANDALONE ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2020

I I I I I

·l I i I I

Sr.No.	Particulars	Unaudited Sect30 2020	Audited March 31 2020
A 1	ASSETS : Non-current assets :
(a)	Property, Plant and Equipment	1719.42	1753.55
		141.68	69.77
(b)	Capital work-in-progress Goodwill	7.77	23.61
(c)		23.20	18.45
(d)	Other Intangible assets Intangible assets under development	2.97
(e)			14.42
(f)	Right of use assets	39.96	45.36
(g)	Financial Assets (i) Investments In Subsidiary/Joint Venture/Associate	441.70	410.47
	(ii) Other investments	-
	(iii) Loans	119.01	98.98
	(iv) Others	10.21	10.64
	Other non-current assets	25.03	27.21
(h)		2530.95	2472.46
	Total Non current assets
2	Current assets :	1324.79
(a)	Inventories Financial Assets		1266.96
(b)	(i) Investments	217.06	238.25
	(ii) Trade receivables	890.76	839.13
	(iii) Cash and cash equivalents	175.68	35.14
		473.39
	(iv) Bank Balance other than (iii) above	8.03	117.26
	(v) Loans	121.61	3.22 80.45
	(vi) Others	-
(C)	Current tax assets Other current assets	106.54	131.70
(d)		3317.86	2712.11
	Total Current assets Total Assets	5848.81	5184.57
B	EQUITY AND LIABILITIES :
	Equity:
(a)	Equity Share Capital	25.37	25.27
(b)	Share Warrant	-	11 .94
(c)	Other Equity	4416.03	3640.33
	Total Equity	4441.40	3677.54
	Liabilities :
1	Non-current llabllltles :
(a)	Financial Liabilities
	(i) Borrowings	44.23	76.36
	(II) Lease liability	10.11	13.02
	(iii) Other financial liabilities	-	-
(b)	Provisions	35.80	30.98
(c)	Deferred tax liabilities (net)	136.90	140.79
(d)	Other non-current liabilities	2.21	2.26
	Total Non current liabilities	229.25	265.43
2	Current llabllltles :
(a)	Financial Liabilities	244.21	309.27
	(i) Borrowings	6.03	5.87
	(ii) Lease liability
	(iii) Trade payables - Dues of micro and small enterprises	36.44	8.28
		514.97	529.57
	- Dues of others (iv) Other financial liabilities	133.78	137.74
(b)	Current Tax Liabilities (net)	59.40	6.75
(c)	Provisions	92.01	92.85
~	Other current liabilities	91.32	151.27
	~· < Total Current llabllltles	1178.16	1241.60
		5848.81	5184.57
• v '. '::\ ~~	Total Eaultv and Llabllltles

Notes:

• 1 The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on November 7, 2020.The Statutory Auditors have carried out the limited review of the results.
• 2 The Board has allotted on September 2, 2020, 5,00,000 fully paid-up equity shares of" 21- each @ " 9551· per share upon conversion of warrants issued on November 7, 2019.
• 3 The Board has declared an interim dividend of~ 81- per share (400%), for which November 17, 2020 has been fixed as the record date for members' entitlement of interim dividend.
• 4 Being manufacturers of pharmaceuticals and providers of essential services, the Company is continuing with Its manufacturing and marketing operations strictly following the Covid-19 related guidelines issued by the government from time to time. The Company has considered possible impact of Covld-19 on the carrying amounts of property, plant and equipments, investments, inventories, receivables and other current assets. The Company expects that the carrying amounts of the assets are recoverable and that the Company will continue to have sufficient liquidity to finance its business operations as well as expansion plans. However, a definitive assessment of Covid-19 impact, at this stage, is not possible in view of uncertain economic environment
• 5 The Company has only one operating segment viz. 'Pharmaceuticals'.
• 6

Place : Mumbai, Date : November 7, 2020

SIGNED FOR IDENTIFICATIO:'.'J BY ~ G. M. KJ\PJ\DIJ\ & CO. MUMBAI.

l_~~~~~~~~~~~~~~~------------------------------------------------_._._._._._._._._._._......... I

IPCA LABORATORIES LIMITED

Regd. Office : 48, Kandivli Industrial Estate, Kandivli (W), Mumbai 400 067

CIN: L24239MH1949PLC007837

Tel:+91 22 6647 4444, E-mail : investors@ipca.com Website : www.ipca.com

				Half Year Ended
		Particulars	September 30, 2020		September 30, 2019
			(₹ Crores)		(₹ Crores)
А.		Cash Flow from Operating Activities
	1)	Net profit before taxation and extraordinary items		879.03		394.69
		Adjustments for:
		Depreciation and Amortisation	91.49 15.84		87.15 ¥.
		Impairment of Intangible Asset
		(Profit) / Loss on sale of Property, plant & equipment	(0.07)		(5.92)
		Net gain on financial asset through FVTPL Interest income on financial asset at amortised cost	(0.20) (2.11)		0.47 (2.82)
		Property, plant & equipment scrapped / transferred	2.18		1.03
		Sundry balances written off / (back)	0.02		(0.04)
		Provision for doubtful debts / advances	0.42		3.88
		Bad debts written off			0.13
		Unrealised foreign exchange (gain) / loss	(17.21)		0.69
		Interest income	(13.85)		(13.22)
		Interest expense	4.27	80.78	9.21	80.56
	2)	Operating profit before working capital changes		959.81		475.25
		Decrease / (Increase) in inventories	(57.83)		(66.43)
		Decrease / (increase) in Trade Receivables	(40.73)		(231.98)
		Decrease / (increase) in Other Financial assets	(34.25)		(10.08)
		Decrease / (increase) in Other assets	27.17		(0.16)
		Increase / (Decrease) in Trade Payables	14.47		75.38
		Increase / (Decrease) in Other Financial liabilities	(0.36)		(22.15)
		Increase / (Decrease) in Other liabilities	(60.00)		(9.14)
		Increase / (Decrease) in Provisions	2.22	(149.31)	12.91	(251.65)
		3) Cash generated from operation		810.5		223.6
		Income tax paid (net)		(100.65)		(84.02)
		Net cash from operating activities		709.85		139.58
		B. Cash Flow from Investing Activities Purchase of Property, plant & equipment including capital Work in
		progress and intangible assets	(126.33)		(82.16)
		Investment in subsidiaries	(20.78)		(23.14)
		Consideration towards Business combination			(108.71)
		Investment in Associates	(10.45)		٠
		Loan given to Associate	(17.00)		(1.00)
		Loan given to Joint Venture	0.27		(0.63)
		Proceeds from Sale of Property, Plant and Equipment	1.24		6.20
		Movement in other bank balances	(355.87)		(0.43)
		Interest received	7.56		11.90
		Net cash from / (used in) investing activities		(521.36)		(197.97)
		C. Cash Flow from Financing Activities
		Issue of Share Capital	35.81
		Increase / (decrease) in short term borrowings	(62.68)		121.45
		Proceeds from long-term borrowings			43.22
		Repayment of long-term borrowings	(35.13)		(103.72)
		Payment of principal portion of Lease liability	(2.87)		(1.95)
		Payment of interest portion of Lease liability	(0.82) (3.49)		(0.69)
		Interest paid Dividend & dividend tax paid	(0.16)		(8.61) (45.78)
		Net cash from (used in) financing activities		(69.34)		3.92
		Net increase / (decrease) in cash and cash equivalents (A + B + C)		119.15		(54.47)
		Cash and cash equivalents at beginning of year		272.07		348.43
		Cash and cash equivalents at end of the period		391.22		293.96
		Components of cash & cash equivalents :
		Cash and cheques on hand		0.43		0.41
		Balance with banks		175.25		251.04
		Mutual Funds	217.06		42.68

SIGNED FOR IDENTIFICATION

G. M. KAPADIA & CO.
MUMBAI.

amas

Place : Mumbai, Date: November 7, 2020

Providence By Order of the Board For Ipca Laboratories Limited Premchand Godha Chairman & Managing Director (DIN 00012691)

ago.

G. M. KAPADIA & CO. (REGISTERED)

CHARTERED ACCOUNTANTS 1007, RAHEJA CHAMBERS, 213, NARlMAN POINT, MUMBAI 400 021. INDIA PHONE : (91 -22) 6611 6611 FAX : (91 - 22) 6611 6600

Independent Auditor's Limited Review Report on unaudited standalone financial results of lpca Laboratories Limited for the quarter and half year ended on September 30, 2020 pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To, The Board of Directors, lpca Laboratories Limited. Mumbai

• 1. We have reviewed the accompanying statement of unaudited standalone financial results ("the Statement") of I pea Laboratories Limited ("the Company") for the quarter and half year ended on September 30, 2020, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations").
• 1. This Statement, which is the responsibility of the Company's Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, 'Interim Financial Reporting' ("Ind AS 34") prescribed under section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements ("SRE") 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity ", issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards of Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that may be identified in an audit. Accordingly, we do not express an audit opinion.
• 1. Based on our review conducted as stated above, nothing has come to our attention that causes us to believe that the Statement, prepared in accordance with the aforesaid Indian

Accounting Standards and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For G. M. Kapadia& Co. Chartered Accountants Firm Registration No. 104767W

~ Atul Shah Partner

Membership No. 039569 UDIN: 20039569AAAAOG1742

Mumbai Dated: November 7, 2020

Ipca Laboratories Limited

Regd. Office : 48, Kandivli Industrial Estate, Kandivli (W), Mumbai 400 067

CIN: L24239MH1949PLC007837

Tel:+91 22 6647 4444, E-mail : investors@ipca.com Website : www.lpca.com

STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2020

Half Year Ended Quarter Ended Sr. No. Particulars Sept 30, 2020 Sept 30, 2020 June 30, 2020 Sept 30, 2019 Sept 30, 2019 Unaudited Unaudited Unaudited Unaudited Unaudited Revenue from operations 1361.10 1534.40 1283,90 2895.50 2362.09 $\mathbf{I}$ п 15.45 12.09 27.54 35.14 Other Income 14,80 2397.23 1376.55 1548.49 1298.70 2923.04 Ш Total Income (I+II) N Expenses: 372.00 393.86 786.07 414.07 722.77 a) Cost of materials consumed 57.94 67.93 92.82 125.87 177.69	Year Ended March 31, 2020 Audited 4648.71 67.00 4715.71 1460.37 359.88 (176.12) 921.23 16.50 210.50 1176.65
b) Purchases of stock-in-trade
c) Changes in inventories of finished goods,
(29.33) (8.29) (36.95) (37.62) (44.73) work-in-progress and stock-in-trade
256.33 254.54 232.04 510.87 447.75 d) Employee benefits expense 2.74
2.31 4.23 5.05 8.82 e) Finance costs 52.12 51.03 49.63 103.15 95.73 f) Depreciation and amortisation expense
258.11 336.27 303.69 561.80 594.03 g) Other expenses
1071,90 1055,34 999.85 2055.19 2002.06
Total Expenses (IV) Profit from ordinary activity before share of profit of associates & joint	3969.01
321.21 226.80 867.85 546.64 395.17 ٧ venture, exceptional items & tax (III - IV)	746.70
Share of Profit / (loss) of associates & joint venture accounted by using the (1.07) (1.37) (2.99) (2.96) M (1.92) equity method	(7.81)
319.29 225.43 864.86 392.21 545.57 VII Profit before exceptional items and tax (V+VI)	738.89
VIII Exceptional items ٠ ٠ ٠	۰
319.29 545.57 225.43 864.86 392.21 IX Profit before tax (VII - VIII)	738.89
x Tax Expense
53.34 102.98 33.28 156.32 70.73 -Current tax	140.59
(0.01) (0.01) 0.19 0.19 -Short / (Excess) provision of earlier years ٠	0.52
(1.58) (1.68) (0.74) (3.09) (3.83) -Deferred tax liability / (asset) including MAT credit	(5.78)
266.70 445.68 193.54 712.38 322.97 XI Profit for the period from continuing operations (IX-X)	603.56
XII Other Comprehensive Income A. (i) Items that will not be reclassified to profit or loss -
(1.31) (3.61) (1.76) (3.96) (0.45) -Actuarial gain/(loss)	(7.40)
(ii) Income tax relating to items that will not be reclassified
0.08 0.23 0.61 0.31 0.69 to profit or loss	1.30
B. (i) Items that will be reclassified to profit or loss
-Exchange difference in translating the financial statement of
(0.31) (2.04) 3.06 (2.35) 3.11 foreign operation	11.10
0.03 (0.14) 0.21 (0.83) 0.18 -Gain/(loss) on cash flow hedge	(1.47)
(ii) Income tax relating to items that will be reclassified to
(0.01) (0.03) (0.04) 0.16 profit or loss ٠	0.36
(0.12) (0.24) C. Share of OCI from investment in associates	(0.36)
(0.51) (0.20) (3.63) (3.12) (1.07) Other Comprehensive Income / (Loss) for the period, net of tax	3.53
442.56 193.34 708.75 321.90 266.19 XIII Total Comprehensive Income for the period (XI + XII)	607.09
Profit for the year attributable to:
267.07 446.13 193.07 713.20 322.70 Owners of the parent	606.32
(0.37) 0.47 (0.82) 0.27 (0.45) Non-controlling interest - profit / (loss) 266.70 445.68 193.54 712.38 322.97	(2.76) 603.56
Other Comprehensive Income for the year attributable to:
(0.38) (3.13) (0.27) (3.51) (1.39) Owners of the parent	2.68
0.07 (0.13) 0.01 (0.12) 0.32 Non-controlling interest - profit / (loss)	0.85
(0.51) (3.12) (0.20) (3.63) (1.07)	3.53
Total Comprehensive Income for the year attributable to:
266.69 443.00 192.80 709.69 321.31 Owners of the parent	609.00
(0.50) (0.44) 0.54 (0.94) 0.59 Non-controlling Interest - profit / (loss)	(1.91)
266.19 442.56 193.34 708.75 321.90	607.09
25.37 25.27 25.27 25.37 25.27 XIV Paid-up equity share capital (Face value of ₹ 2/- each)	25.27
3372.75 XV 4347.62 Other Equity ٠ ٠	3590.27
XVI Share Warrant ٠ ٠ ٠ ٠ ٠	11.94
XVII 4372.99 3398.02 Net Worth	3627.48
XVIII Earning per equity share ( of ₹ 2/- each) (Not annualised): 35.27
21.08 15.32 56.35 25.56 Basic ( ₹ ) $t$ Or/ $B_{\text{inter}}$ 21.08 35.24 15.32 56.35 25.56	47.77 47.73

ä

			'~ Croresl
!Sr. No.	Particulars	Unaudited	Audited
		Sent30 2020	March 31 2020
A 1	ASSETS:
(a)	Non-current assets : Property, Plant and Equipment	1840.51	1877.09
(b)	Capital work-in-progress	141 .86	70.80
(c)	Goodwill on consolidation	38.83	38.83
(d)	Goodwill on acquisition	7.77	23.61
(e)	Other Intangible assets	69.28	121.90
(f)	Intangible assets under development	52.04	14.42
(g)	Right of use assets	39.96	45.36
(h)	Investment accounted for using the equity method	30.67	33.66
(i)	Financial Assets
	(i) Investments	48.09	37.65
	(ii) Loans	113.48	99.41
	(iii) Others	10.32	11.22
Ol	Deferred tax assets (net)	1.97	2.01
(k)	Other non-current assets	25.32	28.16
	Total Non-Current Assets	2420.10	2404.12
2	Current assets :		1323.12
(a)	Inventories	1397.49
(b)	Financial Assets
	(i) Investments (ii) Trade receivables	217.07 920.90	238.25 895.20
	(iii) Cash and cash equivalents	219.99	58.46
	(iv) Bank Balance other than (iii) above	473.39	122.46
	(v) Loans	8.30	2.95
	(vi) Others	120.82	81 .04
(C)	Current tax assets	-	-
(d)	Other current assets	111.87	134.23
	Total Current Assets	3469.83	2855.71
	Total Assets	5889.93	5259.83
B	EQUITY AND LIABILITIES :
	Equity :
(a)	Equity Share Capital	25.37 -	25.27 11.94
(b) (c)	Share Warrants Other Equity	4347.62	3590.27
	Equity attributable to shareholders of the Holding Company	4372.99	3627.48
	Non controlling interest	12.69	13.63
	Total Equity	4385.68	3641.11
	Liabllitles :
1	Non-current llabilities :
(a)	Financial Liabilities	68.20	102.97
	(i) Borrowings (ii) Lease liability	10.11	13.02
	(iii) Other financial liabilities	-	-
(b)	Provisions	37.12	32.23
(c)	Deferred tax liabilities (net)	138.01	141.82
(d)	Other non-current liabilities	2.21	2.26
	Total Non-Current Llabllltles	255.6.5	292.30
2	Current llabllities :
(a)	Financial Liabilities
	(I) Borrowings	250.37	310.95
	(ii) Lease liability	6.03	5.87
	(iii) Trade payables :
	Dues of micro and small enterprises	36.44	8.28
	Dues of others	566.59	601 .57
(b)	(iv) Other financial liabllltles Current Tax Liabilities (net)	135.81 62.11	139.37 7.35
(c)	Provisions	92.71	93.70
(d)	Other current liabllltles	98.54	159.33
	.i:otalCurrent Llabllitles	1248.60	1326.42
/	,, .QtJ~ ' Total Eaultv and Liabllitle<>	l:iiAQ Q~	~259. 3
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STATEMENT OF CONSOLIDATED ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2020

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Notes:

• 1 The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on November 7, 2020.The Statutory Auditors have carried out the limited review of the results.
• 2 The Board has allotted on September 2, 2020, 5,00,000 fully paid-up equity shares of t' 2/- each @ t' 955/- per share upon conversion of warrants Issued on November 7, 2019.
• 3 The Board has declared an Interim dividend oft' Bl- per share (400%), for which November 17, 2020 has been fixed as the record date for members' entitlement of Interim dividend.
• 4 Being manufacturers of pharmaceutlcals and providers of essential services, the Group Is continuing with Its manufacturing and marketing operations strictly following the Covld-19 related guidelines Issued by the government from lime to time. The Group has considered possible Impact of Covld-19 on the canylng amounts of property, plant and equipments, Investments, Inventories, receivables and other current assets. The Group expects that the carrying amounts of the assets are recoverable and that the Group will continue to have sufficient liquidity to finance its business operations as well as expansion plans. However, a definitive assessment of Covid-1 9 Impact, at this stage, Is not possible In view of uncertain economic environment.
• 5 The Group has only one operating segment viz. 'Pharmaceuticals'.
• 6 Figures of the previous periods have been regrouped wherever necessary.

Place : Mumbal, SIGNED FOR IDENTIFICATIO)J' Date: November07, 20' ⁰ BY ~ G. M. KAPADIA & CO. MUMBAI.

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Chairman Pre & chandG~ Managing Director (DIN 00012691)

lpca Laboratories Limited _ . .,. ,,

Regd. Office : 48, Kandivli Industrial Estate, Kandlvli (W), Mumbai 400 067

CIN : l24239MH1949PLC007837

Tel:+91 22 6647 4444, E-mail : lnvestors@lpca.com Website : www.lpca.com

Statement of Consolidated Unaudited Cash Flow for the Half Year ended September 30, 2020

			Helf Year Ended
	Partlculera	September 30, 2020 <' Crores)		September 30, 2019 (tCrores)
	A. CHh Flow from Operating AcUvltles
1)	Net pront befora tuition 1nd extraordinary Items		864.86		392.21
	Adjustments for :
	Depreciation and Amortisation	103.15		95.73
	lmpalrement of Intangible Assets	15.84
	(Profit) I Loss on sale of Property, plant & equipment	10.on		(5.87)
	Share of profit I (loss) of Associates & Joint venture accounted by
	using the equity method	2.99		2.98
	Net gain on financial asset through FVTPL	(0.20)		0.'47
	Interest Income on financial asset at amortised cost	(2.11)		(2.82)
	Property, plant & equipment scrapped I transferred	2.18		1.03 (0.07)
	Sundry balances written orr I (back)	(0.02)
	Provision for doubtful debts I advances	0.44		3.81
	Bad debts written off Unrealised foreign exchange (gain) /loss	(17.21)		0.13 0.60
	Interest Income	(14.08)		(13.38)
	Interest expense	5.05	95.96	9.46	92.05
2)	Operating profit before working capital changes		960.62		464.26
	Decrease I (Increase) In Inventories	(74.37)		(77.94)
	Decrease I (Increase) In Trade Receivables	(17.08)		(215.46)
	Decrease I (Increase) In Other Flnanclal assets	(26.97)		(2.98)
	Decrease I (Increase) In Other assets	24.78		{0.13)
	Increase I (Decrease) In Trade Payables	(5.91)		62.75
	Increase I (Decrease) In Other Financial liabilities	(0.37)		28.68
	Increase I (Decrease) In Other liabnlties	(80.84)		(15.69)
	Increase I (Decrease) In Provisions	2.14	(158.82)	12.82	(208.1 5'
3)	Cuh generated from operation		802.20		278.11
	Income tax paid (net)		(101.00)		(87.35)
	Net cash from operating 1ctlvltles		701 .20		188.78
	B. C11h Flow from Investing Activities Purchase of Property, plant & equipment Including capital Work In
	progress.Intangible assets	(126.39)		(93.09)
	Consideration towards Business combination			(108.71)
	Investment In Associates	(10.45)
	Loan given to Associate	(17.00)		(1.00)
	Loan given to Joint Venture	0.27		(0.63)
	Proceeds from Sale of Property.Plant and Equipment	1.24		6.30
	Movement In other bank balances	(350.68)		(0.43)
	Interest received	7.79		12.06
	Net c11h from I (used ln) Investing actlvltles		(495.22)		(165.50)
	c. Cash Flow from Financing Activities
	Issue of Share Capital Increase I (decrease) In short term borrowings	35.81 (58.20)		103.37
	Proceeds from tong-term borrowings	3.17		53.97
	Repayment of long-term borrowings	(38.91)		(103.72)
	Payment of principal portion of Loaso liablllly	(2.87)		(1.05)
	Payment of Interest portion of Lease liability	(0.82)		(0.69)
	Interest paid	(3.86)		(-46.30)
	Dividend & dividend tax paid	(0.16)		(45.78)
	Net cash from (used ln) flnanclng actlvltles		(65.84)		(41.10)
	Net Increase I (decre1se) In caah and cash equivalents (A+ B + C )		140.14		(37.84)
	Cash and cash equivalents at beginning of year		295.39		370.92
	Movement due to Business combination				0.31
	Cash and cash equivalents at end of the period		435.53		333.39
	Components of cash & cash equivalents :
	Cash and cheques on hand		0.45		0.45
	Balance with banks		219.54		290.43
	Mutual Funds	217.06		42.68
	Less : Fair value {gain)/ loss on Mutual funds	(1 .52)	215.54	co.m	42.51
			435.53		333.39

SIG:\ BY ~ Place : M.Jmbal, MUMBAI. Chairman & Managing Director

By OrderoflheBoard ~ot8fOr/6 ED FOR IDENTIFICA O~ FwJ·~~[S; G. M. KAPADIA & CO. Pr~mchand Godha ^~ Date : November 7 2020 DIN 00012691 **it ~

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G. M. KAPADIA & (REGISTERED) co.

CHARTERED ACCOUNTANTS 1007, RAHEJA CHAMBERS, 213, NARIMAN POINT, MUMBAI 400 021. INDIA PHONE : (91 -22) 6611 6611 FAX : (91 - 22) 6611 6600

Independent Auditor's Review Report on unaudited consolidated financial results for the quarter and half year ended on September 30, 2020 of Ipca Laboratories Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To, The Board of Directors lpca Laboratories Limited Mumbai

* ~ ;? *

• 1. We have reviewed the accompanying statement of unaudited consolidated financial results ("the Statement") of I pea Laboratories Limited ("the Parent") and its subsidiaries, (the Parent and its subsidiaries together referred to as "the Group") and its share of the net profit/(loss) after tax and total comprehensive income/(loss) of its joint venture and associates for the quarter and half year ended September 30, 2020, being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations").
• 1. This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular issued by the SEBI under :s:::::~ gulation 33(8) of the Listing Regulations, to the extent applicable.

Sr. No.	Name of the Entities
	Subsidiaries
1	Ipca Pharma Nigeria Limited, Nigeria
2	lpca Pharmaceuticals Limited, SA. de CV, Mexico
3	lpca Laboratories (U.K.) Limited, UK
4	lpca Pharmaceuticals Inc. USA
5	Ipca Pharma (Australia) Pty Limited, Australia
6	Tonira Exports Limited, India
7	Ramdev Chemicals Private Limited, India
	Step down Subsidiaries
8	Onyx Scientific Limited, UK
9	lpca Pharma (NZ) Pty Limited, New Zealand
10	Pisgah Labs Inc., USA
11	Bayshore Pharmaceuticals LLC, USA
	Joint Venture
12	A vik Pharmaceuticals Limited, India
	Associates
13	Trophic Wellness Private Limited, India
14	Krebs Biochemicals Industries Limited, India (reviewed results)

1. The Statement includes the unaudited standalone financial results of the following entities:

2. 1. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review report of the other auditor referred to in paragraph 7 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.
3. 1. We did not review the unaudited standalone financial results of one associate included in the Statement in which the Group's share of net loss after tax is Rs. 2.44 crores and Rs. 5.25 crores and total comprehensive loss of 2.44 crores and Rs. 5.25 crores for the quarter and half year ended September 30, 2020, respectively, as considered in the Statement. This unaudited standalone financial result of this associate has been reviewed by other auditor whose report has been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect ohhis associate, is based solely on the report of the other auditor and the procedures performed by us as stated in paragraph 3 above. Our conclusion on the Statement is not modified in respect of the above matter.

1. The Statement includes the standalone financial results of eleven subsidiaries (including nine foreign subsidiaries) which have not been reviewed I audited by their auditors or by us, whose unaudited standalone financial results reflect total assets of Rs. 680.43 crores as at September 30, 2020, total revenues of Rs. 71.25 crores and Rs. 150.82 crores, total net loss after tax of Rs. 4.92 crores and Rs. 7.03 crores and total comprehensive loss of Rs. 8.20 crores and Rs. 12.93 crores, for the quarter and half year ended September 30, 2020, respectively and cash inflows (net) of Rs. 20.99 crores for the half year ended September 30, 2020, as considered in the Statement. The Statement also includes the Group's share of net profit after tax of Rs. 0.97 crores and Rs. 2.29 crores and total comprehensive income of Rs. 0.97 crores and Rs. 2.29 crores for the quarter and half year ended September 30, 2020, respectively, as considered in the Statement, in respect of one associate and one joint venture, based on their unaudited standalone financial results which have not been reviewed by their auditors or by us. These financial results are certified by the management. Our conclusion on the Statement is not modified in respect of the above matters.

~af.f>-~cf()

For G. M. Kapadia & Co. Chartered Accountants PAO/ Firm Registration No.104767W

C!J. MUMBAI 9 * * Atul Shah CJ ~ "''t. ~'I> Partner Membership No.039569 UDIN: 20039569AAAAOH6209 ered Acco~~

Place: Mumbai Dated: November 7, 2020

PRESS RELEASE

Ipca Laboratories Q2 FY21 Financial Results

Mumbai, November 7, 2020: Ipca Laboratories Limited today announced its unaudited consolidated financial results for the second quarter and half year ended 30th September, 2020.

Key Financials of Q2 FY21

1--

• Standalone Net Total Income up 7% at Rs.1312.77 crores.
• Consolidated Net Total Income up 6% at Rs. 1376.55 crores.
• Indian formulations income down 1% at Rs.535.49 crores.
• Exports Income up 17% at Rs.686.90 crores.
• Standalone EBITDA margin (before forex (gain)/Ioss) @ 27.28% in 02 FY21 as against @ 22.69% in 02 FY20.
• Consolidated EBITDA margin @ 26.04% in 02 FY21 as against @ 21.79% in 02 FY20.
• Standalone Net Profit at Rs.275.68 crores up 41%.
• Consolidated Net Profit at Rs.266.70 crores up 38%.
• The Board has declared an interim dividend of Rs.8/- per share (400%).

(Rs. Crores) Standalone Q2 FY21 at a glance
Particulars	Q2 FY21	Q2 FY20	Growth
Net Total Income	1312.77	1226.89	7%
Export Income	686.90	588.03	17%
EBITDAbefore Forex (gain) / loss	358.14	278.37	29%
Forex (gain) / loss	(17.02)	2.48	-
Finance Cost	1.81	4.05	-55%
Depreciation and Amortisation	46.26	45.11	3%
Tax Expense	51.41	30.71	67%
Net profit after tax	275.68	196.02	41%
Earnings per share of Rs.2/- each (Rs.)	21.79	15.51	41%

(Rs. Crores) Consolidated Q2 FY21 at a glance
Particulars	Q2 FY21	Q2 FY20	Growth
Consolidated Net Total Income	1376.55	1298.70	6%
Consolidated EBITDA before Forex (gain) / loss	358.56	282.99	27%
Share of (profit) / loss of associates & joint venture	1.92	1.37	40%
Forex (gain) / loss	(17.08)	2.33
Finance Cost	2.31	4.23	-45%
	52.12	49.63	5%
	52.59	31.89	65%
	266.70	193.54	38%
	21.08	15.32	38%

Ipea Laboratories Ltd.

www.ipea.com

Q2 FY21 Revenue break-up			(Rs. Crores)
Particulars	Q2 FY21	Q2 FY20	Growth
Formulations
Domestic	535.49	543.21	-1%
Exports
Branded	91.39	100.20	-9%
Institutional	81.91	61.46	33%
Generics	191.07	179.17	7%
Total Formulations	899.86	884.04	2%
APls
Domestic	58.50	67.17	-13%
Exports	322.53	247.20	30%
Total APls	381.03	314.37	21%
Other Operating Income	16.88	14.15	19%
Standalone Revenue from Operations	1297.77	1212.56	7%
Revenue from Operations - Subsidiaries	63.33	71.34	-11%
Consolidated Revenue from Operations	1361.10	1283.90	6%
Other Income	15.45	14.80	4%
Consolidated Net Total Income	1376.55	1298.70	6%

Key Financials of H1 FY21

• Standalone Net Total Income up 24% at Rs.2809.70 crores.
• Consolidated Net Total Income up 22% at Rs.2923.04 crores.
• Indian formulations income up 3% at Rs.1024.90 crores.
• Exports Income up 37% at Rs.1460.79 crores.
• Standalone EBITDA margin (before forex (gain) / loss) @ 33.87% in H1 FY21 as against @ 21.42% H1 FY20
• Consolidated EBITDA margin @ 32.60% in H1 FY21 as against @ 20.56% H1 FY20.
• Standalone Net Profit at Rs.729.32 crores up 122%.
• Consolidated Net Profit at Rs.712.38 crores up 121%.

Standalone	H1 FY21 at a glance
Particulars	H1 FY21	H1 FY20	Growth
Net Total Income	2809.70	2257.33	24%
Export Income	1460.79	1065.48	37%
EBITDAbefore Forex (gain) / loss	951.74	483.57	97%
Forex (gain) / loss	(23.05)	(6.79)
Finance Cost	4.27	8.52	-50%
Depreciation and Amortisation	91.49	87.15	5%
Tax Expense	149.71	66.62	125%
Net Profit after tax	729.32	328.07	122%
nings per share of Rs.2/- each (Rs.)	57.69	25.96	122%

Ipca Laboratories Ltd. www.ipca.com

ustr"al Estate, CTS No. 328, Kandivli (West), Mumbai 400 067 (Maharashtra), India I T: +91 22 6210 5000 F: +91 2262105005 Regd. Office: 48, Kandivli Industrial Estate, Kandivli (West), Mumbai 400 067 (Maharashtra), India ^I T: +91 2266474444 E: ipca@ipca.com CIN: L24239MH1949PLC007837

Consolidated H1 FY21 at a glance (Rs. Crores)
Particulars	H1 FY21	H1 FY20	Growth
Consolidated Net Total Income	2923.04	2397.23	22%
Consolidated EBITDA before Forex (gain) / loss	952.98	492.92	93%
Share of (profit) / loss of associates & joint venture	2.99	2.96	1%
Forex (gain) / loss	(23.07)	(6.80)	-
Finance Cost	5.05	8.82	-43%
Depreciation and Amortisation	103.15	95.73	8%
Tax Expense	152.48	69.24	120%
Consolidated Net Profit after tax	712.38	322.97	121%
Consolidated Earnings per share of Rs.2/- each (Rs.)	56.35	25.56	121%

H1 FY21 Revenue break-up			(Rs. Crores)
Particulars	H1 FY21	H1 FY20	Growth
Formulations
Domestic	1024.90	996.02	3%
Exports
Branded	224.91	191.83	17%
Institutional	170.58	88.78	92%
Generics	432.52	305.04	42%
Total Formulations	1852.91	1581.67	17%
APls
Domestic	261.54	132.87	97%
Exports	632.78	479.83	32%
Total APls	894.32	612.70	46%
Other Operating Income	35.79	29.20	23%
Standalone Revenue from Operations	2783.02	2223.57	25%
Revenue from Operations - Subsidiaries	112.48	138.52	-19%
Consolidated Revenue from Operations	2895.50	2362.09	23%
Other Income	27.54	35.14	-22%
Consolidated Total Income	2923.04	2397.23	22%

Contact Information:

Harish P. Kamath, Corporate Counsel & Company Secretary at harish.kamath@ipca.com or on +91-22- 6210 6050

Ipca Laboratories Ltd. www.ipca.com

125, Kandivli Industrial Estate, CTS No. 328, Kandivli (West), Mumbai 400 067 (Maharashtra), India I T: +91 2262105000 F:+91 2262105005 Regd. Office: 48, Kandivli Industrial Estate, Kandivli (West), Mumbai 400 067 (Maharasht:ra), India I T: +91 2266474444 E: ipca@ipca.com CIN: L24239MH 1949PLC007837

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